Premium Beauty and Personal Care in Singapore

PRE-COVID-19 PERFORMANCE

Outlook is bright for premium beauty as a status symbol

Rising disposable income and increasing knowledge of the sophisticated results possible by trading up to premium products is being seen among discerning Singaporean consumers. Beauty-orientated categories such as moisturisers and treatments, facial make-up, lip products, liquid/cream/gel/bar cleansers and face masks were performing well in the premium segment.

Premium products performing well in travel retail

Travel retail for premium products was seeing dynamic growth at the end of the review period. This could be seen in the activities of leading companies like Shiseido or Estée Lauder, which were investing in their travel retail businesses, especially in Asia.

L’Oréal and Estée Lauder continue to lead with their extensive brand portfolios

L’Oréal and Estée Lauder Cos remained the number one and two players in premium beauty and personal care in 2019. Both companies have built up a strong presence in the premium segments of beauty products such as colour cosmetics, skin care and sun care, with extensive ranges of established brands, including Lancôme, Kiehl’s, Yves Saint Laurent, Shu Uemura, Biotherm, La Roche-Posay, Urban Decay, Estée Lauder, Mac, Bobbi Brown and Clinique.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to grow by 1% in 2020 at constant 2019 prices in light of the impact of COVID-19. This will be a slightly slower growth rate than that seen a year earlier in 2019, with premium beauty and personal care being hit by the reduction of inbound tourists in 2020, with tourists contributing heavily to sales of premium products.

Affected products within premium beauty and personal care

Premium adult sun care will experience a sharp drop in sales in 2020, with consumers locked down for at least part of the year and missing tourists due to the travel restrictions introduced to slow the spread of COVID-19. Some colour cosmetics will also slip into negative growth in 2020 as they suffer from people being locked down at home, and not needing to wear as much make-up, as well as the missing tourists.

Recovery and opportunities

After the slight dip in value growth expected in 2020, premium beauty and personal care will bounce back with stronger growth in 2021, with healthy positive growth expected in every year throughout the forecast period. Products such as premium adult sun care, which will record declining value sales in 2020 at constant 2019 prices, will return to healthy positive growth in 2021.

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